One Health Leadership Programme

Organisational EnvironmentOne Health Leadership Programme

2020

Tracy Ellis

Understanding the organisa5onal environment

What will be covered in the session:

3 models that can help you to analyse your organisaAon/project.

We will look at

• The components of the OrganisaAonal Environment• AbsorpAve Capacity – the organisaAon’s capacity to absorb, assimilate and apply informaAon• PESTELE analysis – a framework for analysing the external environment • SWOT analysis – a framework for analysing the internal environment• McKinsey Seven S Framework – The components of an organisaAon.

Burke Litwin Causal Model of Organisa5onal Change

Influence over the external environment

Leaders

On the diagram to the leQ, as a leader what do you have:

1. Control over2. Influence over3. Interest in

One Health - Leadership and Management Programme

Click to edit Master title style

Organisa5onal Environment; Organisa5onal Culture; and Effec5ve Leadership

One Health - Leadership and Management Programme

Absorp:ve capacity (AC) framework (adapted from Lane et al25).

Case A

✖✖ ✖

Case B

✔✔ ✔

Case C

✔✔ ✔✔✔ ✔

One Health - Leadership and Management Programme

Click to edit Master title style

Organisa5onal Environment; Organisa5onal Culture; and Effec5ve Leadership

One Health - Leadership and Management Programme

Absorp:ve capacity (AC) framework (adapted from Lane et al25).

Focusing on your immediate project team or departmental group, what do you see as parAcular area that you would like to improve ?

A broad fact finding activity that helps and organisation to establish external factors that could impact decisions made inside the organisation

PESTELE

What does it stand for?

Ethical

• Collaborate - an analysis that involves mulAple perspecAves will deliver a beXer outcome.• Use experAse and resources that are already available within the

organisaAon.• Use PESTLE analysis together with other techniques, such as SWOT

analysis, or scenario planning.• Incorporate the analysis into an ongoing process for monitoring changes

in the business environment.• Try not to get bogged down collecAng vast amounts of detailed

informaAon without analysing and understanding your findings appropriately.• Don’t jump to conclusions about the future based on the past or present.

Some useful 5ps for carrying out a PESTELE analysis:

Advantages

• It’s a simple framework.

• It facilitates an understanding of the wider business environment.

• It encourages the development of external and strategic thinking.

• It can enable an organisaAon to anAcipate future business threats and take acAon to avoid or minimise their impact.

• It can enable an organisaAon to spot opportuniAes and exploit them fully.

Disadvantages:

• Some PESTLE analysis users oversimplify the amount of data used for decisions – it’s easy to use insufficient data.

• The risk of capturing too much data may lead to ‘paralysis by analysis’.

• The data used may be based on assumpAons that later prove to be unfounded.

• The pace of change makes it increasingly difficult to anAcipate developments that may affect an organisaAon in the future.

• To be effecAve, the process needs to be repeated on a regular basis.

Advantages and Disadvantages of PESTELE

PESTLE Analysis for a Pharmaceutical Company

Let’s try a PESTLE in the context of the HORN Project…

More recently a further E has been added, making it PESTELE. The addiAonal E stands for Ethical. Thank you for poinAng this out Leonard.

EEthical

• SWOT is an acronym for:Strengths, Weaknesses, Opportuni:es and Threats.

• It is a planning tool used to understand key factors involved in an organisaAon or project.

• It involves staAng the objecAve of the organisaAon or project, the internal or external factors that are supporAve or unfavourable to achieving that objecAve. It can be used as part of a strategic planning process or for scenario decision making.

SWOT

A SWOT analysis can be used for:

• GeneraAng ideas and soluAons• Problem solving• Planning• Strategic planning (in conjuncAon with PESTLE)

What can a SWOT Analysis be used for?

A SWOT FOR COCA COLA

Individually, spend 5 minutes considering a SWOT in the context of your environment

Ethical Factors - The most recent addi:on to PESTEL is the extra E - making it PESTELE

The link between SWOT and PESTLE

McKinsey 7 S Framework

hXps://thepmgentleman.com/mckinsey-7-s-framework/

QuesAons to consider:

Are your organisaAonal/project values at the heart of what you do?

Do you have control over Hard S’s?

Do you have control over SoQ S’s?

How you would use McKinsey Seven S

Possible next steps

• Undertake a PESTLE and SWOT with you team (include your stakeholders for maximum impact).

• Consider if there are any elements of your area of control that you need to realign using the McKinsey 7 S Framework.

The above will help you to test whether you are focusing on what’s going to have the most posiAve impact. It will also help to highlight acAviAes that will support the absorpAve capacity of your key aims.